Sharekhan's research report on Polycab India
Q2FY2023 performance was led by healthy volume growth in Wires & Cables (W&C) and sharp increase in gross/operating margins. Augmentation of exports, strong traction in Etira brand, capacity expansion and improving working capital cycle bodes well for long-term growth. Company is well-poised to leverage the rising demand for W&C through its large product basket and deeper penetration.
We retain a Buy on Polycab India Limited (Polycab) with a revised PT of Rs. 3,215 (based on October FY24E EPS) on account of healthy H1FY2023 and various long-term catalysts in terms of market share gains through widening distribution reach and product launches.